Melstacorp : Interim Financials for the Year Ended 31st March 2024

MELSTACORP PLC

INTERIM FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31st MARCH 2024

MELSTACORP PLC

STATEMENTS OF COMPREHENSIVE INCOME

		GROUP				COMPANY
Rs. '000s	Unaudited	Audited	Variance	Unaudited	Audited	Variance
For the year ended 31st March,	2024	2023	%		2024	2023	%
	Rs. '000	Rs. '000			Rs. '000	Rs. '000
Revenue	235,741,803	247,261,233	(4.66)		260,594	259,234	0.52
Excise duty	(71,343,337)	(69,179,430)	3.13		-	-	-
Cost of sales and net benefits paid	(89,958,566)	(95,501,445)	(5.80)		(9,531)	(9,696)	(1.71)
Gross Profit	74,439,900	82,580,358	(9.86)		251,063	249,538	0.61
Other Operating Income	2,655,073	2,435,329	9.02		16,713,298	12,302,393	35.85
Selling and distribution expenses	(5,034,825)	(4,632,002)	8.70		-	-	-
Administrative Expenses	(30,771,225)	(29,416,410)	4.61		(397,403)	(318,822)	24.65
Other Operating Expenses	(2,382,012)	(3,081,963)	(22.71)		(2,168,250)	(5,598,315)	(61.27)
Profit from Operations	38,906,912	47,885,311	(18.75)		14,398,709	6,634,794	117.02
Finance Income	5,233,408	10,689,609	(51.04)		1,675,837	2,730,887	(38.63)
Finance Cost	(15,621,706)	(16,886,856)	(7.49)		(1,094,591)	(2,363,980)	(53.70)
Net Finance Income/(cost)	(10,388,298)	(6,197,247)			581,246	366,907	58.42
Share of Profit of Equity-Accounted Investees (Net of Tax)	984,654	1,115,651	(11.74)		-	-	-
Profit before Tax for the year	29,503,267	42,803,713	(31.07)		14,979,955	7,001,701	113.95
Income Tax	(17,166,236)	(19,835,803)	(13.46)		(525,114)	(1,623,355)	(67.65)
Profit for the year	12,337,032	22,967,910	(46.29)		14,454,840	5,378,346	168.76
Other comprehensive income
Items that will never be reclassified to profit or loss
Revaluation of property, plant and equipment	18,618,796	4,654,426	300.02		-	-	-
Equity investments at FVOCI - net change in fair value	12,230,166	(231,229)	5,389.20		11,454,718	(436,981)	2,721.33
Actuarial gain/(losses) on retirement benefit obligations	(95,994)	4,479	(2,243.19)		(684)	(1,607)	(57.45)
Share of other comprehensive income of equity-accounted	(47,512)	60,776	(178.18)		-	-	-
investees (net of tax)
Income tax on other comprehensive income	(4,327,626)	(3,031,120)	42.77		205	(6,444)	103.18
	26,377,831	1,457,332	1,710.01		11,454,240	(445,032)	2,673.80
Items that are or may be reclassified to profit or loss
Exchange Difference on translation of foreign operations	(3,056,207)	2,770,806	(210.30)		-	-	-
Net movement on Cashflow Hedges	1,501,550	(417,788)	459.40		-	-	-
Share of other comprehensive income of equity accounted	(505,310)	168,399	(400.07)		-	-	-
investees
	(2,059,967)	2,521,417	(181.70)		-	-	-
Total other comprehensive income for the year	24,317,864	3,978,749	511.19		11,454,240	(445,032)	(2,673.80)
Total comprehensive income for the year
36,654,896	26,946,659	36.03		25,909,080	4,933,314	(425.19)
Profit Attributable to:
Equity Holders of the Parent	9,290,404	17,222,179	(46.06)		14,454,840	5,378,346	168.76
Non Controlling Interest	3,046,628	5,745,731	(46.98)		-	-	-
Profit for the year	12,337,032	22,967,910			14,454,840	5,378,346
Total Comprehensive Income Attributable to:
Equity Holders of the Parent	26,119,834	19,237,009	35.78		25,909,080	4,933,314	425.19
Non Controlling Interest	10,535,061	7,709,650	36.65		-	-	-
Total comprehensive income for the year	36,654,896	26,946,659			25,909,080	4,933,314
Earnings per Share (Rs.)
Basic Earnings per Share	7.97	14.78	(46.06)		12.40	4.62	168.76

MELSTACORP PLC

STATEMENTS OF COMPREHENSIVE INCOME

		GROUP				COMPANY
Rs. '000s	Unaudited	Unaudited	Variance		Unaudited	Unaudited	Variance
For the quarter ended 31st March,	2024	2023	%	2024	2023	%
	Rs. '000	Rs. '000			Rs. '000	Rs. '000
Revenue	64,615,679	67,740,138	(4.61)	63,147	64,635	(2.30)
Excise duty	(17,815,205)	(17,153,234)	3.86	-	-	-
Cost of sales and net benefits paid	(22,878,863)	(26,315,655)	(13.06)		(1,616)	(4,387)	(63.18)
Gross Profit	23,921,611	24,271,248	(1.44)	61,531	60,248	2.13
Other Operating Income	1,593,229	1,293,260	23.19	3,422,283	5,404,715	(36.68)
Selling and distribution expenses	(1,482,372)	(338,111)	338.43	-	-	-
Administrative Expenses	(8,725,178)	(9,524,588)	(8.39)	(117,981)	(99,126)	19.02
Other Operating Expenses	(1,527,199)	(2,626,179)	(41.85)	(2,168,250)	(5,598,315)	(61.27)
Profit from Operations	13,780,092	13,075,630	5.39	1,197,584	(232,478)	(615.14)
Finance Income	823,922	(913,541)	(190.19)	336,249	619,561	(45.73)
Finance Cost	(4,673,544)	(5,659,976)	(17.43)		(166,769)	(573,125)	(70.90)
Net Finance Income/(cost)	(3,849,623)	(6,573,517)			169,479	46,435	264.98
Share of Profit of Equity-Accounted Investees (Net of Tax)	254,933	180,003	41.63	-	-	-
Profit before Tax for the Quarter	10,185,403	6,682,115	52.43	1,367,063	(186,043)	(834.81)
Income Tax	(4,815,984)	(5,837,211)	(17.50)		(116,215)	(582,142)	(80.04)
Profit for the Quarter	5,369,418	844,905	535.51	1,250,848	(768,185)	262.83
Other comprehensive income
Items that will never be reclassified to profit or loss
Revaluation of property, plant and equipment	18,618,796	4,654,426	300.02	-	-	-
Equity investments at FVOCI - net change in fair value	1,137,792	2,498,668	(54.46)	1,011,053	1,824,757	44.59
Actuarial gain/(losses) on retirement benefit obligations	(95,994)	4,479	(2,243.19)	(684)	(1,607)	(57.45)
Share of other comprehensive income of equity-accounted	(47,506)	60,776	(178.17)	-	-	-
investees (net of tax)
Income tax on other comprehensive income	(4,364,680)	(3,031,120)	44.00		205	(6,444)	103.18
	15,248,408	4,187,229	264.16	1,010,575	1,816,706	(44.37)
Items that are or may be reclassified to profit or loss

Net change in fair value of available for sale financial assets Exchange Difference on translation of foreign operations Net movement on Cashflow Hedges

Share of other comprehensive income of equity accounted investees

-	-	-	-	-	-
(2,573,161)	(3,479,944)	(26.06)	-	-	-
1,113,616	1,103,867	0.88	-	-	-
(410,458)	(405,304)	1.27	-	-	-

	(1,870,003)	(2,781,381)	(32.77)	-	-	-
Total other comprehensive income for the quarter
13,378,405	1,405,848	(851.63)	1,010,575	1,816,706	44.37
Total comprehensive income for the quarter
18,747,824	2,250,754	732.96	2,261,423	1,048,522	115.68
Profit Attributable to:
Equity Holders of the Parent	2,607,857	(132,518)	(2,067.93)	1,250,848	(768,185)	262.83
Non Controlling Interest	2,761,561	977,420	182.54	-	-	-
Profit for the Quarter	5,369,418	844,903		1,250,848	(768,185)	262.83
Total Comprehensive Income Attributable to:
Equity Holders of the Parent	8,489,163	2,382,758	256.27	2,261,423	1,048,522	115.68
Non Controlling Interest	10,258,661	(132,006)	7,871.37	-	-	-
Total Comprehensive Income for the Quarter	18,747,824	2,250,752		2,261,423	1,048,522
Earnings per Share (Rs.)	2.24	(0.11)		1.07	(0.66)

MELSTACORP PLC

STATEMENTS OF FINANCIAL POSITION

	GROUP		COMPANY
	Unaudited	Audited	Unaudited	Audited
As at,	31-Mar-2024	31-Mar-2023	31-Mar-2024	31-Mar-2023
	Rs. '000s	Rs. '000s	Rs. '000s	Rs. '000s
Non-Current Assets
Property, plant and equipment	151,426,021	136,492,748		9,132	10,577
Intangible assets	6,478,450	5,866,940		1,633	1,574
Investment property	8,717,862	7,483,058		7,504,151	7,100,954
Biological assets	10,780,867	9,858,189		-	-
Right-of-use assets	18,192,706	20,771,732		14,607	21,913
Investments in subsidiaries	-	-		64,281,021	63,480,244
Investment in equity accounted investees	10,586,644	10,061,240		419,887	590,690
Deferred tax asset	3,565,322	6,447,686		6,840	5,593
Other non current financial investments	44,655,904	31,368,952		36,295,841	24,880,708
	254,403,776	228,350,545		108,533,112	96,092,253
Currents Assets
Inventories	14,342,003	15,122,194		967	969
Produce on bearer biological assets	13,107	17,968		-	-
Trade and other receivables	41,647,779	37,162,725		64,531	29,208
Amounts due from related companies	613,725	566,377		507,477	616,862
Other current financial investments	27,187,785	29,516,425		5,657,446	4,835,440
Other current assets	551,040	566,399		-	-
Cash and cash equivalents	15,660,026	22,985,573		18,007	170,022
	100,015,466	105,937,661		6,248,428	5,652,501
Assets held for Sale	169,423	193,420		-	-
Total assets	354,588,665	334,481,626		114,781,541	101,744,754
EQUITY AND LIABILITIES
Share capital and reserves
Stated Capital	70,000,000	70,000,000		70,000,000	70,000,000
Reserves	59,593,725	42,973,589		23,134,294	11,679,576
Retained earnings/(Losses)	(15,362,297)	(14,517,121)		14,023,908	10,034,813
Equity attributable to owners of the Company	114,231,427	98,456,468		107,158,203	91,714,389
Non controlling interest	59,879,836	52,335,859		-	-
Total equity	174,111,262	150,792,327		107,158,203	91,714,389
Non-Current Liabilities
Interest bearing loans and borrowings	40,219,162	49,366,434		-	-
Lease liabilities	14,009,363	16,583,185		9,696	16,617
Retirement benefit obligations	4,520,878	4,014,696		20,793	16,697
Deferred tax liabilities	21,867,468	19,041,170		1,300,229	1,152,720
Other liabilities	512,362	662,930		-	-
	81,129,232	89,668,415		1,330,718	1,186,034
Current Liabilities
Trade and other payables	50,026,520	42,979,456		195,756	138,470
Other liabilities	15,233	17,512		-	-
Amount due to related companies	1,887,249	2,317,827		940,563	473,284
Income tax payable	5,031,963	6,443,553		242,574	595,281
Interest bearing loans and borrowings	9,971,734	10,087,618		-	-
Lease liabilities	2,305,149	2,579,560		7,649	7,242
Bank overdrafts and other short term borrowings	30,110,323	29,595,358		4,906,077	7,630,054
	99,348,170	94,020,884		6,292,620	8,844,331
Total liabilities	180,477,402	183,689,299		7,623,338	10,030,365
Total Equity and Liabilities	354,588,665	334,481,626		114,781,541	101,744,754
Net Assets per Share (Rs.)	98.02	84.48		91.95	78.70
The above unaudited figures are provisional and subject to audit.

I certify that the Financial Statements have been prepared & presented in compliance with the requirements of Companies Act No. 07 of 2007.

sgd/- Prasanna Pinto

Group Financial Controller

The Directors are responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the board.

sgd/-	sgd/-
C.R.Jansz	M.A.N.S.Perera
Deputy Chairman	Managing Director

30th May 2024 in Colombo.

MELSTACORP PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

GROUP

Attributable to equity holders of parent

Balance as at 1st April 2022

Adjustment for Surcharge Tax levied under the Surcharge Tax Act No. 14 of 2022

Fair Value

Retained

Non

Stated

Revaluation

Capital

Reserve

General

Exchange

Timber

Cash Flow

Earnings/

controlling

Total equity

reserve

Total

fluctuation

Hedge Reserve

(Losses)

interest

capital

reserve

reserve

fund

reserve

reserve

reserve

reserve

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

Rs.'000

70,000,000

11,287,818

19,112,137

20,491

4,341,675

5,708,382

2,045,527

(2,875,372)

(855,538)

(21,472,548)

87,312,572

49,020,474

136,333,046

-

-

-

-

-

-

-

-

-

(3,761,801)

(3,761,801)

(481,250)

(4,243,051)

Balance as at 1st April 2022 (Adjusted)

Total Comprehensive Income for the Period

Profit for the year

Other Comprehensive Income

Equity investments at FVOCI - net change in fair value Defined Benefit Plan Actuarial Gains (Losses) (Net Of Tax) Revaluation of property, plant and equipment

Share of other comprehensive income of equity-accounted Gain on change in Fair Value of Biological Assets

Net movement on Cashflow Hedges

Income Tax on Other Comprehensive Income Exchange difference on translation of foreign operations Income tax on other comprehensive income

Total Other Comprehensive Income for the period

Total Comprehensive Income for the period

Transactions with owners directly recorded in the Equity Dividends paid to Non Controlling Interest

Reduction of stated capital (Note-9 (ii))

Repurchase of Non voting shares (Note-9 (i))

Share of Net Assets of Equity-Accounted Investees (Net of Tax) Acquisition of Non Controlling Interest Chnages in % Holding of Subsidiaries

Dividends Paid During the Period Transferred From/To Retained Earnings

Effect of Business Combinations of Equity accounted Investors

Effect of Changes in Holding percentage without change in control Acquisition of Non Controlling Interest of Subsidiaries Acquisition of control over equity accounted investees

Gain on disposal of FVTOCI Investments

Total Contributions by and Distributions to Owners

Balance as at 31st March 2023

70,000,000	11,287,818	19,112,137	20,491	4,341,675	5,708,382	2,045,527	(2,875,372)	(855,538)	(25,234,349)	83,550,771	48,539,224	132,089,995
-	-	-	-	-	-	-	-	-	17,222,179	17,222,179	5,745,731	22,967,910
-	-	-	-	-	-	-	(252,591)	-	-	(252,591)	21,362	(231,229)
-	-	-	-	-	-	-	-	-	(15,890)	(15,890)	20,369	4,479
-	2,964,014	-	-	-	-	-	-	-	-	2,964,014	1,690,412	4,654,426
-	31,286	-	-	-	82,114	-	-	-	982	114,382	114,793	229,175
										-		-
-	-	-	-	-	-	-	-	(92,805)	-	(92,805)	(324,983)	(417,788)
										-		-
-	-	-	-	-	947,623	-	-	-	-	947,623	1,823,183	2,770,806
-	(1,684,438)	-	-	-	-	-	23,096	-	11,439	(1,649,903)	(1,381,217)	(3,031,120)
-	1,310,862	-	-	-	1,029,737	-	(229,495)	(92,805)	(3,469)	2,014,830	1,963,919	3,978,749
-	1,310,862	-	-	-	1,029,737	-	(229,495)	(92,805)	17,218,710	19,237,009	7,709,650	26,946,659
-	-	-	-	-	-	-	-	-	-	-	(3,228,913)	(3,228,913)
										-
										-		-
-	-	-	-	-	-	-	-	-	99,867	99,867	94,582	194,449
										-		-
-	-	-	-	-	-	-	-	-	(4,719,858)	(4,719,858)	-	(4,719,858)
-	-	-	-	1,151,542	-	288,294	-	-	(1,439,837)	(1)	1	-
										-		-
-	121,162	-	-	-	-	386,837	1	-	(319,345)	188,655	(21,962)	166,693
-	27,108	-	-	72,775	143,161	-	(512)	(20,199)	(122,309)	100,024	(756,722)	(656,698)
										-		-
										-		-
-	148,270	-	-	1,224,317	143,161	675,131	(511)	(20,199)	(6,501,482)	(4,331,313)	(3,913,014)	(8,244,327)
70,000,000	12,746,950	19,112,137	20,491	5,565,992	6,881,280	2,720,658	(3,105,378)	(968,542)	(14,517,121)	98,456,467	52,335,860	150,792,327

MELSTACORP PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

GROUP
					Attributable to equity holders of parent
								Fair Value		Retained		Non
	Stated	Revaluation	Capital	Reserve	General	Exchange	Timber	Cash Flow	Earnings/		controlling	Total equity
	reserve	Total
						fluctuation		Hedge Reserve	(Losses)	interest
	capital	reserve	reserve	fund	reserve	reserve	reserve	reserve
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as at 1st April 2023	70,000,000	12,746,950	19,112,137	20,491	5,565,992	6,881,280	2,720,658	(3,105,378)	(968,542)	(14,517,119)	98,456,469	52,335,860	150,792,329
Total Comprehensive Income for the Period
Profit for the year	-	-	-	-	-	-	-	-	-	9,290,404	9,290,404	3,046,628	12,337,033
Other Comprehensive Income
Net Change in Fair Value of FVTOCI Investments	-	-	-	-	-	-	-	12,176,458	-	-	12,176,458	53,708	12,230,166
Defined Benefit Plan Actuarial Gains (Losses) (Net Of Tax)	-	-	-	-	-	-	-	-	-	12,864	12,864	(52,048)	(39,185)
Revaluation of property, plant and equipment	-	7,418,643	-	-	-	-	-	-	-	-	7,418,643	11,200,152	18,618,796
Income tax on other comprehensive income	-	(1,779,407)	-	-	-	-	-	1,878	-	12,510	(1,765,019)	(2,619,415)	(4,384,435)
Exchange Difference on translation of foreign operations	-	-	-	-	-	(1,074,230)	-	-	-	-	(1,074,230)	(1,981,977)	(3,056,207)
Net movement on Cashflow Hedges	-	-	-	-	-	-	-	-	344,498	-	344,498	1,157,052	1,501,550
Share of Other Comprehensive Income of Equity-Accounted
Investees (Net of Tax)	-	-	-	-	-	(259,391)	-	-	-	(24,392)	(283,783)	(269,039)	(552,822)
Total Other Comprehensive Income for the period	-	5,639,236	-	-	-	(1,333,621)	-	12,178,337	344,498	981	16,829,431	7,488,433	24,317,864
Total Comprehensive Income for the period	-	5,639,236	-	-	-	(1,333,621)	-	12,178,337	344,498	9,291,386	26,119,835	10,535,061	36,654,896
Transactions with owners directly recorded in the Equity
Dividends paid to Non Controlling Interest	-	-	-	-	-	-	-	-	-	-	-	(3,455,350)	(3,455,350)
Share of Net Assets of Equity Accounted Investees	-	-	-	-	-	-	-	-	-	119,397	119,397	113,195	232,592
Acquisition of Non Controlling Interest Changes in % Holding of	-	(5,223)	-	-	-	-	(16,644)	(1)	-	22,860	992	22,491	23,483
Subsidiaries
Dividends paid/declared	-	-	-	-	-	-	-	-	-	(10,465,266)	(10,465,266)	-	(10,465,266)
Transferred From/To Retained Earnings	-	-	-	-	(833,641)	-	647,196	-	-	186,445	-	-	-
Effect on acquisition of subsidiaries	-	-	-	-	-	-	-	-	-	-	-	328,578	328,578
Total Contributions by and Distributions to Owners	-	(5,223)	-	-	(833,641)	-	630,552	(1)	-	(10,136,564)	(10,344,877)	(2,991,086)	(13,335,963)
Balance as at 31st March 2024
70,000,000	18,380,963	19,112,137	20,491	4,732,351	5,547,659	3,351,210	9,072,958	(624,044)	(15,362,297)	114,231,427	59,879,836	174,111,262

MELSTACORP PLC

STATEMENTS OF CHANGES IN EQUITY

COMPANY	Stated	Revaluation	Capital	Fair Value	Retained	Total
	capital	reserve	reserve	reserve	earnings/(losses)
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as at 1st April 2022	70,000,000	116,308	19,100,000	(7,092,825)	9,575,828	91,699,311
Adjustment for Surcharge Tax levied under the Surcharge
Tax Act No. 14 of 2022	-	-	-	-	(198,378)	(198,378)
Balance as at 1st April 2022 (Adjusted)	70,000,000	116,308	19,100,000	(7,092,825)	9,377,450	91,500,933
Profit for the year	-	-	-	-	5,378,346	5,378,346
Other Comprehensive Income						-
Equity investments at FVOCI - net change in fair value	-	-	-	(436,981)	-	(436,981)
Actuarial Gain/(Losses) on retirement benefit obligations	-	-	-	-	(1,607)	(1,607)
Income tax on other comprehensive income	-	(6,926)	-	-	482	(6,444)
Total Other Comprehensive Income for the period	-	(6,926)	-	(436,981)	(1,125)	(445,032)
Total Comprehensive Income for the period	-	(6,926)	-	(436,981)	5,377,221	4,933,314
Transactions with Owners of the Company directly
recognized into Equity
Dividend paid	-	-	-	-	(4,719,858)	(4,719,858)
Transactions with Owners of the Company directly
recognized into Equity	-	-	-	-	(4,719,858)	(4,719,858)
Balance as at 31st March 2023	70,000,000	109,382	19,100,000	(7,529,806)	10,034,813	91,714,389
Balance as at 1st April 2023	70,000,000	109,382	19,100,000	(7,529,806)	10,034,813	91,714,389
Profit for the year	-	-	-	-	14,454,840	14,454,840
Other Comprehensive Income						-
Equity investments at FVOCI - net change in fair value	-	-	-	11,454,718	-	11,454,718
Actuarial Gain/(Losses) on retirement benefit obligations					(684)	(684)
Income tax on other comprehensive income	-	-	-	-	205	205
Total Other Comprehensive Income for the period	-	-	-	11,454,718	(479)	11,454,240
Total Comprehensive Income for the period	-	-	-	11,454,718	14,454,362	25,909,080
Transactions with Owners of the Company directly
recognized into Equity
Dividend paid	-	-	-	-	(10,465,266)	(10,465,266)
Transactions with Owners of the Company directly
recognized into Equity	-	-	-	-	(10,465,266)	(10,465,266)
Balance as at 31st March 2024	70,000,000	109,382	19,100,000	3,924,913	14,023,908	107,158,203

MELSTACORP PLC
STATEMENTS OF CASH FLOWS
	GROUP			COMPANY
	Unaudited		Audited	Unaudited		Audited
For the year ended 31st March,	2024		2023		2024		2023
	Rs. '000		Rs. '000	Rs. '000		Rs. '000
CASH FLOW FROM OPERATING ACTIVITIES
Profit before Taxation	29,503,267		42,803,713		14,979,955		7,001,701
Adjustment for
Depreciation and amortization of PPE,Biological assets, ROU Assets and intangible assets	8,867,099		9,578,546		10,969		13,011
Provision for gratuity	987,601		522,573		6,989		6,230
Interest Expenses	11,779,882		13,783,069		1,090,794		2,363,980
Interest income	(4,393,228)		(4,762,670)		(1,675,837)		(2,644,828)
Dividend income	(418,015)		(784,725)		(16,307,262)		(11,687,830)
(Gain) / loss on Disposal of Property, Plant and Equipment and biological assets	(82,317)		(2,102)		-
Loss of retiring of Assets held for sale	-		72,269		-
(gain)/Loss on Fair Value of Investment Properties	(275,710)		(341,499)		(403,197)		(514,793)
Provision/(Reversal) for Bad & Doubtful Debts and impairment	1,908,640		1,102,379		-
Provision for Impairment/ written off of Receivables in Subsidiaries	-		-		1,763,421		4,697,067
Provission for Impairment in investment in Subsidiaries/ Joint ventures	-		-		404,829		901,249
Share of profit of equity-accounted investees (net of tax)	(984,654)		(1,115,651)		-		-
(Gain)/ Loss on disposal of other financial investments	(6,679)		(420,045)		-		(97,185)
(Gain) on disposal of Group Investments	-		-		(2,827)		(2,485)
Gain on termination of ROU assets	(3,002)		(10,842)		-		-
Impairement of property Plant and Equipment, biological assets and Intangible Assets	162,375		1,498,145		-		-
Amortization of Deferred Grants and Subsidies	(16,566)		(28,143)		-		-
(Gain) / loss on Change in Fair Value of Biological Assets	(1,020,256)		(518,220)		-		-
(Gain)/loss on change in fair value of financial assets at fair value through profit or loss	(53,184)		(125,128)		3,797		(86,059)
Operating Profit before Working Capital Changes	45,955,254		61,251,669		(128,369)		(49,942)
(Increase)/Decrease in Inventories	1,768,474		(5,414,186)		2		79
(Increase)/Decrease in Receivables	(4,707,722)		(3,078,795)		6,879		(1,303)
(Increase)/Decrease in Related Party Receivable and Payable	(477,927)		2,889		371,376		(71,714)
Increase/(Decrease) in Payables	6,197,649		(4,312,409)		57,290		62,022
Cash Generated from Operations	48,735,728		48,449,168		307,178		(60,858)
Dividend Received	418,015		784,725		16,265,059		14,913,479
Interest Paid	(11,579,404)		(11,177,896)		(1,018,099)		(2,244,810)
Income Tax and surcharge tax Paid	(17,619,987)		(19,510,212)		(731,357)		(1,690,262)
Retiring Gratuity Paid	(556,911)		(435,383)		(3,577)		(2,896)
Net Cash Flow from Operating Activities	19,397,440		18,110,402		14,819,203		10,914,653
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of/ Investment in equity accounted investees	(312,819)		(117,500)		(150,000)		(100,000)
Dividends received from equity accounted investees	451,839		828,794		-		-
Acquisistion of subsidiaries net of cash acquired	(4,924,978)		(1,499,440)		(755,000)		-
Investment in Subsidiaries	-		-		(150,459)		(2,573,836)
Repurchase of own shares	-		-		-
Proceeds from disposal of shares of subsidiaries	23,483		6,142		23,483		6,142
Proceeds from settlement of Loans given to Related Companies	-		-		200,000		3,441,578
Net of Acquisition of Non Controlling Interest and proceeds from disposal of shares in subsidiaries	-		(656,698)		-		-
Net proceed from disposal/(Acquisition)of Other Investments	1,331,716		(2,436,154)		(46,833)		351,090
Acquisition of Property, Plant & Equipment, Investment Property and intangible assets	(6,006,623)		(3,688,831)		(2,279)		(4,159)
Additions of Mature and Immature Plantations net of sale of timber	(42,163)		(270,881)		-		-
Loans disbursed to Subsidiaries and Associates	-		-		(1,091,786)		(1,133,870)
Proceeds on retirement of assets held for sale	-		1,878,448		-
Proceeds on Disposal of Property, Plant & Equipment	135,989		40,288		-
Interest Received	4,393,228		4,762,670		184,950		40,603
Net Cash Flow Used in Investing Activities	(4,950,329)		(1,153,162)		(1,787,924)		27,548
CASH FLOW FROM FINANCING ACTIVITIES
Net Advances received from/(repaid to) equity accounted investees/ Subsidiaries	(113,276)		(130,408)		13,962		(19,000)
Loans and borrowings Received	2,433,395		540,667		-		-
Repayments of loan Borrowings and payments to Lessor on Lease Rights	(10,664,676)		(13,533,602)		(8,013)		(8,325)
Receipt of deferred Income	37,763		26,026		-		-
Capital raised by subsidiaries from minority shareholders	-		160,551		-		-
Dividends paid	(10,465,266)		(7,866,430)		(10,465,266)		(7,866,430)
Dividend paid by subsidiaries to minority share holders	(3,455,350)		(3,228,913)		-		-
Net Cash Flow from Financing Activities	(22,227,409)		(24,032,109)		(10,459,317)		(7,893,755)
Net Increase/Decrease in Cash & Cash Equivalent during the year	(7,780,298)		(7,074,869)		2,571,962		3,048,446
Cash & Cash Equivalents
At the beginning of the year	(6,609,785)		1,479,244		(7,460,032)		(10,508,478)
Effect of movements in exchange rates	(60,214)		(1,014,160)		-		-
Net movement during the period	(7,780,298)		(7,074,869)		2,571,962		3,048,446
At the end of the year (Note A)	(14,450,297)		(6,609,785)		(4,888,070)		(7,460,032)
Note A-Cash and Equivalents are as follows
Short Term Deposits	2,715,120		5,892,476		-		-
Cash in Hand & Bank	12,699,375		17,043,369		18,007		170,022
Cash in transit	245,532		49,728		-		-
Bank overdrafts and other short term borrowings	(30,110,323)		(29,595,358)		(4,906,077)		(7,630,054)
	(14,450,297)		(6,609,785)		(4,888,070)		(7,460,032)

MELSTACORP PLC

NOTES TO THE FINANCIAL STATEMENTS

SEGMENTAL INFORMATION
	GROUP
For the year ended 31st March,	2024	2023
	Rs.'000	Rs.'000
(a) Revenue
Beverages	119,158,730	128,816,798
Plantations	8,168,505	10,243,162
Telecommunications	1,035,064	1,592,016
Financial services	7,945,330	6,358,469
Diversified	99,434,175	100,250,788
Total gross revenue	235,741,803	247,261,233
Excise duty on beverages	(71,343,337)	(69,179,430)
Total net revenue	164,398,466	178,081,803
(b) Industry Segment Profit
Beverages	23,999,009	31,685,950
Plantations	1,005,625	2,970,731
Telecommunications	(2,513,475)	(4,074,430)
Financial services	1,018,258	2,390,160
Diversified	5,009,196	8,715,651
	28,518,614	41,688,062
Share of Profit of Equity-Accounted Investees (Net of Tax)	984,654	1,115,651
Net Profit Before Tax	29,503,267	42,803,713
Taxation	(17,166,236)	(19,835,803)
Net Profit After Tax	12,337,032	22,967,910

MELSTACORP PLC

NOTES TO THE FINANCIAL STATEMENTS

1 The interim Financial Statements have been prepared in accordance with the Accounting Policies set out in the most recent Annual Report and are in compliance with Sri Lanka Accounting Standard

LKAS 34 - Interim Financial Reporting.

1. Where appropriate, the previous year's presentation has been amended to conform to current year classifications.
2. Amount due from the Secretary to the Treasury o/a of SLIC Shares
   As per the Judgment delivered by the Supreme Court of the Democratic Socialist Republic of Sri Lanka on June 2009 it was declared and directed that the shares of SLIC purported to have been sold to Distilleries Consortium on 11th April 2003 along with any shares purchased from employees as per SSPA shall be deemed to have been held for and on behalf of the Secretary to the Treasury.
   As directed by the said judgment, the Secretary to the Treasury returned the money that was paid by Group Subsidiary Milford Holdings (Pvt) Limited (MHL) to purchase shares from SLIC.
   In respect of Profits Earned
   Further, MHL was entitled to retain the profits of SLIC derived by MHL from 11 April 2003 to
   04th June 2009 in lieu of the interest for the aforesaid investment. The Secretary to the Treasury was directed to cause profits of SLIC to be computed and audited from the date of the last audited Balance Sheet of SLIC to 04th June 2009 to enable MHL to obtain such profits.
   However, Secretary to the Treasury has not yet determined the value of profits to be retained by the MHL; hence no adjustments were made to the Financial Statements in this regards.
   The Group has initiated legal actions to recover the said dues.
3. Impact of Revival of Underperforming Enterprises and Underutilized Assets Act -
   Pelwatte Sugar Industries PLC Group (PSIP)
   Consequent to the enactment and passage of the above Act of Parliament on 9 November 2011,
   the state officials are occupying the land leased to PSIP and running the operations of PSIP and its related companies. Subsequently a Compensation Tribunal was formed as required by the Act. Without assuming any liability or without any prejudice to, or impact on its rights, PSIP has submitted a claim to the Compensation Tribunal.
   On 13 March 2013 Commercial High Court of Western Province (Colombo Civil) issued a winding-up order of Pelwatte Sugar Industries PLC. The Court has appointed P.E.A. Jayewickreme and G.J. David, as the Liquidators.
   Since our group is deprived of participating in controlling the financial, operating policies and other relevant activities, the financial statements of PSIP have been deconsolidated from the group financial statements in year 2013/14. The investment made in PSIP is classified as a fully impaired
   long term investment in the group.